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Tether Becomes a Top Buyer of U.S. Treasuries
A Crypto Giant Outranks Countries
Tether, the company behind the stablecoin USDT, has become one of the biggest buyers of U.S. Treasury bonds. It now holds more Treasuries than Canada, Taiwan, and Mexico.
With $33.1 billion in purchases, Tether ranks seventh worldwide in Treasury ownership. It trails behind major players like the Cayman Islands, which leads with over $100 billion in holdings.
Tether CEO Paolo Ardoino shared the news on March 20, pointing out that, unlike hedge funds, Tether’s investments come from a single entity.
Why Tether Is Buying U.S. Treasuries
Tether uses Treasuries to back its stablecoin, USDT. These bonds are short-term government debt and are considered low-risk investments. Holding them strengthens USDT’s stability.
With regulators watching stablecoins closely, Tether wants to show it has strong reserves. The company is making sure it can meet withdrawals and maintain trust.
Stablecoins Are on the Rise
The total supply of stablecoins has now passed $219 billion, and it keeps growing. Analysts from IntoTheBlock believe this means the crypto bull market isn’t at its peak yet.
Even lawmakers in the U.S. are taking notice. They’re working on new regulations for stablecoins and the wider crypto market.
Stablecoin Laws Coming Soon?
Kristin Smith, CEO of the Blockchain Association, says new laws could arrive by August 2025. She spoke about this at the Digital Asset Summit in New York.
Her views match those of Bo Hines, a government advisor on digital assets. He also expects stablecoin rules to be finalized soon.
With backing from both parties in Congress and the White House, crypto regulation is moving forward faster than before.
